| Mon 13 Aug 2001, 0:00 | | Dimension Data Holdings Plc - Acquisition By Datac |
|
Dimension Data's Asian subsidiary Datacraft
moves to capture larger share of fast growing
Korean market with US$35 m acquisition
London, UK, 13 August 2001. Dimension Data Holdings plc ("Dimension Data")
announces that its 51% Asian subsidiary, Datacraft Asia Ltd ("Datacraft")
has strengthened its position in Korea with the KRW 45.4 billion (US$35
million) cash purchase of a leading, local systems integration company Dasan
Electronics Co Ltd. Dasan is ranked the eighth largest network systems
integrator in Korea by Business & Computer magazine in its Jan 2001 issue.
The acquisition comes as the Korean market for network systems integration
is on the upswing again after levelling off during the last nine months.
Since it made its first acquisition there in December 1998, Datacraft's
business in Korea has benefited greatly from major investments made in the
development of national broadband networks and in the provision of training
and integration services to major telecom and enterprise customers.
"Korea has been a significant market for us in the last couple of years and
we're now focused on playing an even bigger role in the next phase of the
Internet build-out there," said Ron Cattell, Chief Executive Officer of
Datacraft Asia.
"The established telecom broadband players are starting in earnest to build
up their local customer access networks, having already developed their
national backbone networks in the first phase of development. At the same
time there are well-funded new entrants coming into the market with a need
to establish their infrastructure as soon as possible.
"We therefore feel the time is right to increase Datacraft's investment in
the Korean market and Dasan Electronics is a highly successful, profitable
company that we know well."
Established in May 1992, Dasan Electronics has both competed with and worked
alongside Datacraft's wholly owned subsidiary, Datacraft Korea, on specific
customer situations in the past. Major Dasan customers include Hanaro
Telecom, Powercom, Kepco and ONSE and their key technology partners; Nortel,
Alcatel, Lucent and Cisco provide a perfect complement to Datacraft's
existing capability.
"The combination of Datacraft Korea's strength-in-depth with Dasan's deep
penetration into the telecommunications industry positions the Datacraft
Group to provide a greater variety of solutions to existing major customers
as well as expand the customer base," said MY Lee, Regional Director,
Datacraft Korea.
Dasan will continue to be managed by Managing Director Mr Na Young-Min and
they will remain as an independent company within Datacraft's Korean
division at the present time.
With the acquisition, Datacraft now has a total of 63 offices throughout
Asia Pacific.
The purchase price of KRW 45.4 billion (US$35 million) is subject to a
guaranteed profit before tax of KRW 26bn (US$20 million) over 36 months. The
minority shareholders holding 30.4% will receive a one-time payment of KRW
13.8bn. The majority shareholders will be paid a basic purchase price of
KRW 31.6bn, of which KRW 15.2bn will be paid on completion and the balance
based on profit targets between 31 December 2001 and 31 December 2003.
In line with Datacraft's strategy of indexing acquisition price to
performance, the basic purchase price will be adjusted up or down by a
maximum of 30%, depending on the actual profits achieved by Dasan over the
three-year period.
The installment at completion will be financed by proceeds from the share
placement in June 2000.
Datacraft will be announcing its results for the year-ended 30 June on 16
August 2001.
For further information:
UK
Karen Cramer, Investor Relations + 44 20 7659 1600
Louise Taylor, UK Corporate Communications
Dimension Data Holdings plc
James Melville-Ross/Olivia Cundy + 44 20 7831 3113
Financial Dynamics
SA
Samantha Presbury - media relations Dimension Data + 27 11 709 1292
Dimension Data Holdings plc
Bruce Hetherington + 27 21 465 5504
Beachhead Media & Investor Relations
Notes to Editors:
Dimension Data Holdings plc (LSE: DDT), is a leading technology company that
represents a new category of systems integrator providing network and multi-
channel e-business solutions to global corporations. Founded in 1983 as a
specialist supplier of technology and services, Dimension Data's strategy
has evolved with the emergence of the intelligent network as the most
important enabler in business today. Dimension Data's global presence
combined with its expertise and extensive skills base in network
infrastructure and e-business solutions environments enables its customers
to ascend into the global marketplace through 100% connectivity and
integration. Listed on the London Stock Exchange, Dimension Data is a
member of the FTSE 250 index, employs over 12,000 people and operates in
over 30 countries on six continents. Dimension Data has achieved a three-
year compound annual growth rate in US dollars of 73% in revenue and 36% in
basic earnings per share. For more information, please go to www.didata.com
Datacraft Asia is the region's leading independent network systems
integrator and e-business enabler. Listed on the main board of the Singapore
Exchange, Datacraft is in the business of building and managing Internet
infrastructure, implementing online business solutions and delivering value-
added network services for service providers and corporate customers across
Asia Pacific. The company offers unparalleled regional coverage and
specialist support with its extensive network of 63 offices throughout
Singapore, Malaysia, Hong Kong, China, India, Taiwan, Indonesia, Thailand,
New Zealand, Vietnam, Philippines, Japan and Korea. Datacraft is a member of
the Dimension Data Group. Listed on the London Stock Exchange, Dimension
Data is a leading global network services and commerce solutions provider.
More information about Datacraft Asia can be found on the Web at
www.datacraft-asia.com.
